Oil Prices Are Falling on Global Markets: Key Factors
6 August 14:36
Oil prices are falling on Thursday, August 6, following reports of progress in negotiations between Iran and Oman. This was reported by "Komersant Ukrainian", citing “Interfax-Ukraine.”
Negotiators from the two countries have reached an agreement on a shipping route through the Strait of Hormuz, said Ismail Baghai, a representative of the Iranian Foreign Ministry.
Bagai noted that the parties have agreed on the “geographical parameters” of this route. However, he said that this agreement cannot guarantee security in the Strait of Hormuz due to the risk of destabilizing actions by the United States.
The price of October Brent crude futures on the London-based ICE Futures exchange stands at $79.1 per barrel, which is $0.35 (0.44%) lower than at the close of the previous trading session. On Wednesday, these contracts rose by $0.09 (0.1%) to $79.45 per barrel.
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WTI crude oil futures for September delivery on the New York Mercantile Exchange (NYMEX) electronic trading platform have fallen by $0.48 (0.64%) to $74.74 per barrel as of this hour. At the close of the previous session, their price had fallen by $0.55 (0.73%) to $75.22 per barrel.
Oil prices have fallen to levels last seen after the U.S. and Iran signed a memorandum of understanding in mid-June, and traders continue to await signals regarding the progress of the current negotiations between Washington and Tehran.
U.S. President Donald Trump earlier this week gave a positive assessment of the progress of these talks, but reiterated that the United States would deal Iran a “very strong blow” if no agreement is reached. Iran, meanwhile, denies that talks with the U.S. are taking place.
“We continue to see skepticism regarding exactly who is negotiating with whom, and what such an agreement would mean for shipping,” notes Andrew Lipow, president of Lipow Oil Associates.
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